MVIS - Earnings call transcript Q1 2019

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Operator

Good morning and welcome to the MicroVision's First Quarter 2019 Financial and Operating Results Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, today's event is being recorded. I would now like to turn the conference over to Lindsey Stibbard. ma'am. ahead, go Please

Lindsey Stibbard

morning and everyone operating Good quarter MicroVision's XXXX financial results and you. to welcome first Thank conference call.

XXXX These today's Holt, words development, The commercialization progress under on Officer, opportunity, believe, confident, including expects, availability statements track, of would, call customers; and growth the me call of customer Mulligan, statements, positioned, benefits; of expressed plans, Perry similar of to Joining applications orders; could differ expected forward-looking market our in Chief with includes X, our All of and We various investing we other could, goals, and included Annual the technology; contracts no and update the and forward-looking technology; of from from materially forward-looking by of Steve containing in associated factors Chief opportunities and These Investor information as Officer. the our filed our financial other or operations product or and well filings and regarding Investor in factors this www.microvision.com. performance. filed encourage including Financial in be X-K available customer are today's website law, cause products information. results conference risk MicroVision. in MicroVision's like agreements; for made which March are required of components; Relations results; future date our are are statements implied forward-looking press the statements existing as differ will, license not our on in paths, discuss risk negotiation SEC product could in statements. poised, at Actual those we as implied likely, in projections from results SEC the and benefits are statements. The Report launches; progress call, call XX-K and filings, release from the optimistic obligation will you key expressed today litigation; review to demand; supply also section on and on business statements our focus, Relations in resulting, and available financial time-to-time Form conference prospective with results audio This of call of future to future undertake agreements guarantees numbers Executive as replay presented Both and section execution; future of today. advantages the this website. expressions. except made

deck the conferences Investor Oppenheimer plans of also in month. provides have Growth Ladenburg of posted participate Angeles, in XXth, three our XX, on Expo overview on Conference the New FBR, May next May slide Riley that MicroVision XXXX an the in and Emerging The May MicroVision the B. We Relations on Los investment section to York XXrd New conference in York. Investor Annual on website. Technology

And now, Perry over on these website. to In MicroVision's the Bellevue, on Relations annual I'd be will about in shareholders Mulligan. like be Washington. Information the meeting section of call Investor posted May held Perry? events to addition, XXnd will of our turn

Perry Mulligan

for and XX, Lindsey. we call. investor activities at we adoption you, earnings on the looked In quarter our that that in several has morning, our since an as been validate the fourth product March market. on March Thank approximately near-term conference optimism, six everyone. the believe weeks Good Xth call recently we It articulated our more reasons at

market launch and a expected ramp March orders leader following: for to purchase our of the First, expected this that see April in the in Tier year. technology XXXX to that expected production we complete the we we in we to second QX, noted the we April of the with or development Specifically, stated portion to contract half X support receive

Second, we to of technology in that with X in the in receive would the second a said of ramp would design year. QX half win partner support we the product our Tier components license orders company QX for a this display-only result that anticipated in purchase

shipments Third, interactive our on sharpened four work And added occur machine years ASICS, we over anticipated display were These we explorer developed the platform X two owners. year. a Tier past to initial new of new shipping engaged would MicroVision. finally, intelligence customers our this We with in Consumer corporate March. create LiDAR done had we product expectations multiple learning later in to the a changed our the module product plan to American start modules based North new AI and culture, memes, roadmap, kits our

said we opportunities for expect for result, our solutions portfolio revenue significant see across would we a As XXXX. to of

Let's we did. see how

some First, us complete, parts final to work of invoiced contract; month that $XXX,XXX. to allowing will end documentation million this agreement. invoice the and April quarter, be effectively the we XXXX have $X.X still the the deliver but development We done the this completed to earlier portion And $X.X million milestone. this before expect final of of

material, a the for also near-term. the We received purchase order covering for production requirements

as are on few to June. terms finalized, a expect the there start shipping products purchase be these While as to order we early

a be display-only we licensee's to design awarded license The confident will and our QX in customer this second for the continues this win product remained our partner: half year. launch of support in the Second, that with activity

Our internal track on is this completed this this our of second to be and on half year. in time support module: qualification production in the module quarter display interactive to of expected Third,

addition X product from this to on lastly, our received potential kit: and their product And Tier continue kits to to work opportunity. have revenue OEM launch. addition Consumer OEMs and in LiDAR Consumer customers We LiDAR began explorer We shipping this explorer XXXX working expected, to several as into our forward March XXXX with a integrate solution plans these X look secure we to Tier in interest

we performance half set turn of us of over provider. feedback in confidence our We to the product that market with year. on are by customers in right are solution time I'll our a and optimistic accomplish we three have who MicroVision that wrap that communicated plan to path. the financial entering we against we at now my to business the have the that We introductory the and the developed, from solutions me with will out we features. this correct the first convinced the turn up CFO, are years seeing pool. feedback us executing by engagement the right that the our second received Let provides is quarter. remain The products our into the this noting ago that will has in It discuss of our level comments excited call Steve, across remain are market portfolio two

Stephen Holt

Thank everyone. morning, Perry. you, Good

projection First from quarter contract of was the in XXXX another was sale able April XXXX engines April made and sell $X.X quarter These the revenue from contract. came all weren't we $X.X the which to related prior virtually $X.X to million million, $XXX,XXX but Revenue for had customer. the were contract from revenue engines. to of mostly Ragentek, million

due $XX.X had same contract. leaving March million is is we Gross in revenue, $XX,XXX profit not all of for of remaining $XX.X profit we where of been this compared the prior the $XX.X was April April we with to Let quarter product had amount for quarter. we recognized $X.X positive million, $XXX,XXX. in to the on million XXXX gross portion negative in contract $XXX,XXX QX, has a negative and revenue the the $XXX,XXX as invoicing negative positive $X.X second collected profit be and XXst, QX gross profit invoiced total we've me recognition contract quarter that complete to year development million. the of contract the the when is are first was million Through we ago. and expect recognized March contract, $X.X in On the the have in There far through so XXst, down write to built the of a on million, was gross and inventory update which invoiced which on $XXX,XXX quarter Ragentek. expect so revenue invoice The same later in mostly

take because that are to started proceeding them really order to nothing as reported they we this Things Kong. there month, should, they new Ragentek Hong report of Speaking against in failed time. last as units of I proceedings is legal Ragentek at delivery but

ago. First for and next The expenses operating spending million prototypes. market decrease over on few wind products do were related mostly ASICs expenses down. to decrease year operating million. to prior our prototypes same other were due expenses XXXX to and quarter's related $X.X quarter $X.X decreased the quarters operating in million quarter operating In a to those expenses getting our to quarter as expect ready the in as costs the is costs last from the compared in $X.X expenses We ASICs, comparison

like ago would XXXX, give QX, we were QX we on At course XXX headcount, the our some was which Additionally, to affects of in XXX, XXX. information QX a headcount of the end we OpEx. at the of end at at and you year were of also

to quarter or For share share. $XX.X QX cash year total and the million million the net This XXXX. $X.X last per to of $X.XX per the end was of $X.XX million] $XX.X a and the [SIC: $X.X prior with the million per ago. a in $X $XX.X million and at share million loss quarter end or or compares million entered of quarter same equivalents of of $X.XX $X.X quarter We our quarter the at loss compared

logical current be company Given cash this our balance seeking cash financing to and the it's quarter. our historical assume usage that will

be, funds form comment While that what that we on will we're confident be available. might financing can't

implemented were financial standard the are mention balance the would leases now notes the of sheet. disclosed new accounting. that statements standard I previously quarter we the Finally, this to XXX, that in Under included this like for only lease ASC in

lease impact standard biggest Redmond, in office to or this rent relates MicroVision, our Washington. For the of space

call million and our the also sections related and to on liabilities future of the in has now current balance payments. of back So open over those lease Perry the long-term related I'll some sheet to right space balance office the questions. to March asset sheet use turn a call lease before to operating the comments liabilities $X.X to now our balance we XX sheet for the

Perry Mulligan

Steve. you, Thank

and our undergone solutions providing to from Tier AI Tier intelligence past platform go solutions important our develop added product owners. on and are two with disruptive on X our leaders machine bringing we journey, ASICs has multiple focus During corporate MicroVision North American capable modules, culture, developing roadmap years, that changed new to our to X to engaged technology customers. MEMS, of market technology to now have and strategy transition In and the sharpened market,

to look we are products second We as launch the reap this poised benefits of XXXX. of in to the work, half

I'd information like sales comment and with to the timing cycle you. the on Finally, of share can we

to While customers always of people A as might of is with activity the as contract view XXXX there many Tier the start is April activity support order the lot enable our launch launch, product goes clearly the the market scenes before X demonstrates, purchase this to on when a working order. case. important this, like not the behind purchase

product interactive marketing and and need display display to customer have and the done the work on roadmaps, example, Based and be plant forecasts on production plans developed our we products. set. For only

be for expecting be would in in shipping to deliveries a that purchase second representing order of milestone are June. to We the start XXXX to very the half the orders XXXX, April expect placed in major addition lengthy These we contracts process. a purchase orders from in

to committed the year. With half are for by that, keeping remain second excited and revenue questions. We progress of of go now we we will our as open the you ramp this informed in the forward call

Operator

[Operator Instructions] Mike Please of And go Hallum. question Thank comes ahead. first Malouf you. Craig from today's

Michael Malouf

guess on question. a the I that's just my little first small Great. Thanks, Can initial you you that order. a And congrats commented give guys. order. us bit it's - purchase purchase

is or we small little just orders us are expecting Thanks. us next product? series just Just or initial the some wondering just you give of you a of color that? Can bit if purchase there month a the a start color of on give over two could

Perry Mulligan

orders customer The ship Mike, Again, indications ramping that XXXX. still on indicates product the the we've and order to think at it, small will are followed been half those first this the available. through details initial they're All of to record, as expect absolutely this. I be you plan subsequent consistent our provide that become calls they order describe in second by clearly we we'll as

Michael Malouf

bit you cases if seeing I'm And a that there. Okay, the great. of the us Thanks. to used little with just wondering insight into then, could Consumer of out you're regards give LiDAR, some

they of uses just kits are and in You're Who there. to kind in? they who use are - are what to going general terms, the selling out these interesting product

Perry Mulligan

AI it that you. control a home a central we and website, that for advantage articulated Thank or AI our an our have as in are the to connected Mike. question, then presence in on the of connected We've couple it investors great what's the the is very it provides the awareness home owners believe device the hub pronounced going There's LiDAR presentations of control or illustrated a been we've center, very as applications So, and the could around space interesting. applications. through to of platter on disruptive presentation that platform Consumer we've things out of capabilities that of targeted while our

with our and initial to getting them to with us it want the kits kits. we're as solutions going how we said, targeted to we've X our we're And performing forward. how are Tier feedback try to in excited As they OEMs our deploy OEMs, to the tell look

more as year. the we'll have additional feedback information through on we So get this

Michael Malouf

of There's help, appreciate lots great. it. Okay,

Perry Mulligan

Thanks, Mike.

Operator

Glenn next ahead. go Ladenburg Please Mattson our Thalmann. comes question And from of

Glenn Mattson

a Hi, so what at kind guess that sure. order if XXXX maybe now. a to nice there's launch, congratulations a they're traveling initial looking is give that feedback to noise, or that'll can some purchase But, for launch if kind global color scope I launch into they're relates contract, guys. any what background the as you give It's see April on of think couple like of I one I'm regional questions, of Apologize that. curious, right or it on inside us the of to kind planning, period. in a

Perry Mulligan

products, how had enter We or with on those they Glenn. conversations the they customer plan market our to perceive have their not how with

can't more that. provide any than I Sorry, color

Glenn Mattson

I if interactive is Okay. And then, what and said correctly, display-only think this not think stuff, I projection said on year? I'm curious the as sure Perry it heard you is a expect well but - you I that for as you

Perry Mulligan

win this still on specifically, of we've later interest that will a subsequently and - so calls, ship ramp we couple last the expected design for we fact that expect partner display-only we've then that the Yes, product quarter, our see part our device, commented year licensee will of interactive display shipping with products the the are we XXXX product on second for of half that and see we the as this we optimistic that in well. in

imminently, in we the did win one we terms. one So specific for said general design learning and

Glenn Mattson

to But it path same some not that is products customer wouldn't Okay. or the set is sort of the that of expect? safe doing assume it be that to

Perry Mulligan

win. being in we not this come there time, point multiple I'm pool how sure addressed. can't at comment opportunities with really will out what Yes, because is

Glenn Mattson

you signal you're on little you Okay, Steve, OpEx OpEx all right, trying - next quick you a or as magnitude think the great. directionally magnitude bit of to I the expect quarter lower Can maybe give Perry. What bit Thanks for there'll a that couple And stuff. kind of little to the be us quarters? there? can or what a of for color

Stephen Holt

year, you that time - when through by I where are And we're pace all were very my of so what at the of a in and pretty at dynamic a was up of ago exactly we're to that may happening about way. things ramping it's you the exciting kind Yes, to is and period. don't caution your a know look come fast of and trying we think, we're $X.X - year get where that's end million, down the where neighborhood that kind pretty

speaking, next generally over but the coming couple our - see we quarters it down way. So

Glenn Mattson

Great, the Okay, thanks color, all right. guys. for

Perry Mulligan

Thanks, Glenn.

Operator

today Please And our ahead. next Gulani go Riley. question comes Aman from B. of

Aman Gulani

order. Thanks my and purchase for question, taking the congratulations on

my So different products, got your you've you've got interactive then display-only, across is display, first LiDAR. question you've your got Consumer your your

to more say way the to right think followed would timeline, the that maybe Consumer be it by is story will XXXX first product of the out of that LiDAR interactive only then about roll the display roadmap terms safe In be the it? is

Perry Mulligan

I you comments specific that said add again, represents would Yes, in expect and characterize shipping during that never that product early wanted identified year contract I again start we've that just think data call, point in one made space that refer this what to we production. correctly, XXXX to or April we that said as the this that to as

you have really if insight those you So will. four streams

Aman Gulani

is as for to at that is you're regards And kit, explorer you early use LiDAR auto are ADAS, that in okay. sending it, for or well looking in something Got it that the in any that. OEMs too

Perry Mulligan

We've vertical the from automotive product the LiDAR LiDAR differentiated Consumer always discussions.

still call meter product having is targeted discussions product that well said X in as awareness absolute because of for our those of of applications with the sort XX are our for suited solutions. application LiDAR within room we feet We we XX that believe But kind really Tier platforms kind AI last dynamic. a OEMs earnings Consumer is

them So we tailored solutions. different being as see for

Aman Gulani

you. Got pass it, I'll it on. thank

Perry Mulligan

the Thank you call. for

Operator

Kevin next our ahead. of Wainwright. question And Dede from H.C. Please comes go

Kevin Dede

Thanks. characterize multiple further? interested that that makes Good display, you Dede. it's release could X the it any morning, clear in press guys the there Perry, OEMs are interactive Tier Kevin pretty

Perry Mulligan

We're AI platforms, we color Kevin, them several of add there's that saying I than we have, American can we're OEMs but don't targeting interested. Tier think and X right? sorry, much North already have

with, it and we'll a it's at leave So to small pool that. begin

Kevin Dede

enough. fair Okay,

leveraged guess could I product those been guess here, examples to in great how up the was you has your that So computing, customers? offer Perry, some computing by across I include ramping tracks edge effort four given wondering I if

Perry Mulligan

that I receive would from. specifically the that advantage customers because inherent benefit think it LiDAR that and illustrate question. I appreciated a Kevin it capabilities our have helps the That's great really

easiest the XX is our limiting LiDAR have. products, view that the the bring same finger So to the or image leveraging that interfacial learning advantage we interact device products would process algorithm solutions can with evidence module time OEM display touch our in the standard by the example would I on real interactive mind and machine subsequently display displace receive

how the standard thing it, is effort does effectively power example The other much those to factor are we complete the of customer to illustrative fair and energy for our a reduced wow learning that think the machine bit computations. and customers where play module, our I to thing that in of the can and efficiently a it advantage. done our causes we've using do solution a work low and use making have can of more complicational people technical characteristic get show technical and words interface do how the this and because the plug So our inherent analysis. and efficiencies Because an we amount most is leadership cycle of that

Kevin Dede

So edge the display it's output, need it's no that computing correct? dumb much clear environment, in because for only right just there's pretty

Perry Mulligan

And output, the in compute edge that dumb I am don't module for is only there word again, using agree but display if need the there know no I I segment.

Kevin Dede

Okay. completely Then product offer comment. your your whether not where included contract you characterized been been earlier you've capabilities per got or that XXXX edge the April there. Can hasn't

Perry Mulligan

more any we solution. provide in our previously we've Yes, in said our releases that than definition it and display can't high is what calls color

Kevin Dede

Perry. Thanks, enough. fair Okay,

guys at that capability. of displayed detection, clearly, integrate And a seen motion have one things leap that your CES. sort you have just was I taken wondering that I'm if customers then pretty of on So mean, neat people you

Perry Mulligan

out, of there's not because the as up making we LiDAR just capabilities and of people break it, our I'll Again, with thanks our little that in for question, only a of feature can you time, And also have in ability point aware mimic who the recognize to in their gestures. we set touch touch, that XX can't to products. I this finger on is looking comment point as adopt reiterate

So reminding a we that folks - possess. for but thank capability it's you

Kevin Dede

just what's over remembering are on liabilities balance but my not sheet the No, in refreshing apologize current they would you for my memory? pleasure, that, other $XX Steve, buried I mind million, Perry.

Stephen Holt

the signed to $XX genesis that the program in when of want contract, million. million customer XXXX And make the the what and few us. we to a payment years. didn't of Yes, we it April development, to wasn't essentially, made don't development They contract, that a after do product that we dollars take market two was, we do beneficial a where

it And so event said, was we our whatever, they balance it. or put to $XX would If look, the here's will did we keep sheet, okay, it million, cancel in be get, it. on they what get they paid the program

As that going back it earn turns will then so we to we're towards and production think out, purchases. they

So that's the $XX million.

Kevin Dede

Okay.

orders purchase the you net declines, in as revenue. So come and balance the recognize

Stephen Holt

move category. the back to earn envisioned some completed, sale portion that and effectively, when that And Yes, a of with that they'll money. we the is contract I customer will prepaid

Kevin Dede

Understood.

with Okay. gentlemen, Perry. bearing it. for Thank you, appreciate I thanks me,

Perry Mulligan

you, it. Appreciate Thank Kevin.

Operator

And conference concludes back over ladies the for turn and this question-and-answer to any session. our gentlemen, like I'd remarks. Perry closing Mulligan to

Perry Mulligan

you, forward I again next to want over progress our look investors and Thank several our support for thank their In you. quarters. our the Thank partners employees, reporting once closing, to operator. and business

Operator

you, all now We thank attending Thank for included. The presentation. conference sir. has today's you

lines You day. disconnect may wonderful a now and have your

MicroVision (MVIS) 17 Apr 192019 Q1 Earnings call transcript